SA tax relief on pension contributions

Brighty75

Hi all

I have a PAYE job that I have a company pension with, paid via salary sacrifice.
My taxable earnings are below the 40% tax band

I also have rental income I do a SA for and this pushes me into the 40% bracket for the last 3 years.

I've just realised, I think, that I could/should have been claiming tax relief on the extra 20% on my pension contributions, but I can't see where I would input these figures on the online SA.

The pension section says not to include company pensions, so I've never ticked that section, but looking now I have selected it, but there's only a section for pensions where the the company contributes post tax and the pension provider adds the 20%. Would I still add my figures in that section, even though it's a salary sacrifice?

Thanks

Dazed_and_C0nfused

Brighty75 said:

Hi all

I have a PAYE job that I have a company pension with, paid via salary sacrifice.
My taxable earnings are below the 40% tax band

I also have rental income I do a SA for and this pushes me into the 40% bracket for the last 3 years.

I've just realised, I think, that I could/should have been claiming tax relief on the extra 20% on my pension contributions, but I can't see where I would input these figures on the online SA.

The pension section says not to include company pensions, so I've never ticked that section, but looking now I have selected it, but there's only a section for pensions where the the company contributes post tax and the pension provider adds the 20%. Would I still add my figures in that section, even though it's a salary sacrifice?

Thanks

Are you actually contributing to a pension?

Salary sacrifice is where you agree to a reduced salary in return for additional employer contributions.  You are not entitled to any pension tax relief on employer contributions as you haven't paid them.

And you wouldn't enter those in the pension contribution part of a tax return for that reason, you didn't make those contributions.

You do have less earnings to declare though so you have avoided paying 40% tax on all of your rental profits by virtue of having some basic rate band left over from your employment.

Brighty75

Dazed_and_C0nfused said:

Brighty75 said:

Hi all

I have a PAYE job that I have a company pension with, paid via salary sacrifice.
My taxable earnings are below the 40% tax band

I also have rental income I do a SA for and this pushes me into the 40% bracket for the last 3 years.

I've just realised, I think, that I could/should have been claiming tax relief on the extra 20% on my pension contributions, but I can't see where I would input these figures on the online SA.

The pension section says not to include company pensions, so I've never ticked that section, but looking now I have selected it, but there's only a section for pensions where the the company contributes post tax and the pension provider adds the 20%. Would I still add my figures in that section, even though it's a salary sacrifice?

Thanks

Are you actually contributing to a pension?

Salary sacrifice is where you agree to a reduced salary in return for additional employer contributions.  You are not entitled to any pension tax relief on employer contributions as you haven't paid them.

And you wouldn't enter those in the pension contribution part of a tax return for that reason, you didn't make those contributions.

You do have less earnings to declare though so you have avoided paying 40% tax on all of your rental profits by virtue of having some basic rate band left over from your employment.

You are correct, of course, senior moment. I've paid 20% instead of 40% on a salary sacrifice sized chunk of my rental income. Makes sense now, thankyou